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Use this template when leasing a car from a third party or agency. This free car lease agreement sample keeps the dealer and the customer on the same page and helps to prevent legal challenges from either side. And it allows for easy customization to suit your specific requirements.

Car Lease Agreement Template

Image 1

Created by:

​[Lessor.FirstName][Lessor.LastName][Lessor.Company]​

Prepared for:

​[Lessee.FirstName][Lessee.LastName]​

​[Lessee.Company]​

This Car Lease Agreement (the “Agreement”) sets out the terms and conditions upon which [Lessor.FirstName]​[Lessor.LastName] (the “Lessor”), is a Company duly registered under the laws of [Lessor.State] with registered number and having its registered address at [Lessor.StreetAddress][Lessor.City][Lessor.PostalCode], shall lease a Vehicle to [Lessee.FirstName]​[Lessee.LastName] (the “Lessee”), being a Company duly registered under the laws of [Lessee.State] with registered number and having its registered address at [Lessee.StreetAddress][Lessee.City][Lessee.PostalCode] (together, the “Parties”).

In this Car Lease Agreement sample, the “Lessor” refers to the vehicle owner, while the “Lessee” pertains to the individual or entity leasing it. The Lessee may or may not be an Approved Driver (as listed in Schedule B). It can be either a natural person or a legal entity, such as a company. If the Lessee is a natural person, please modify the aforementioned clause accordingly.

WHEREAS: The Lessor is the registered owner of the Vehicle.

WHEREAS: The Lessor is desirous of leasing the Vehicle to the Lessee on such terms as are set out in this Lease Agreement, and the Lessee for his part is desirous of leasing the Vehicle from the Lessor on said terms.

NOW, THEREFORE, IT IS HEREBY AGREED as follows:

1. DEFINITIONS

In this Car Lease Agreement:

Legal language can be confusing. Refer back to this section of the car lease contract if you have any questions about what a specific term means.

1.1“Vehicle” and “Car” shall both mean the vehicle set out in Schedule A regardless that the Vehicle may not be a car.

1.2 “Approved Drivers” shall mean those persons set out in Schedule B.

1.3 “Lease Rates” shall mean the Rates set out in Clause 4.

1.4 “Date of Collection” shall mean the date set out in clause 5.2.

1.5 “Place of Collection” shall mean the place set out in clause 5.2.

1.6 “Return Date” shall mean the date set out in Clause 5.3.

‌1.7 “Place of Return” shall mean the place set out in clause 5.3.

1.8 Unless it is evident from the context and with regard to the generality of this Car Lease Agreement that a clause intends to mean otherwise: words denoted in the singular only shall include the plural and vice versa; words denoted in any gender shall include all genders; and terms denoting people or persons shall include both natural and legal persons (such as corporations) and vice versa.

1.9 The heading names in this Car Lease Agreement are provided as reference only and do not form part of the Agreement.

1.10 This Car Lease Agreement may be executed in both English and other languages. If there is a conflict between the Agreement in its various translations, the English version shall prevail.

1.11 The illegality or unenforceability of any clause (or part thereof) shall have the effect of voiding that clause (or part thereof) only and not the entirety of the Agreement.

1.12 This Car Lease Agreement may be executed either in one original or in two counterparts.

1.13 The terms of this Car Lease Agreement shall be deemed to be binding on both Parties based on their respective conduct, notwithstanding any error or defect in the execution of this Car Lease Agreement.

The terms and conditions of your agreement outline the rights and responsibilities of both parties. These must meet legal and compliance guidelines to prevent future lawsuits.

2. OBLIGATIONS OF THE LESSOR

It is agreed that the Lessor shall make the Vehicle available to the Lessee for the duration of this Car Lease Agreement to be collected from the Place of Collection on the Date of Collection.

3. OBLIGATIONS OF THE LESSEE

It is agreed that the Lessee shall make use of the Vehicle during the operation of this Car Lease Agreement in accordance with terms of this Car Lease Agreement and will return the Vehicle to the Place of Collection on or before the Return Date with the same fuel level as when the Vehicle was taken. It is further agreed that the Lessee will pay the Lease Rates promptly and shall observe the terms and conditions set out in Clause 7.

4. LEASE RATES

It is agreed that the Lessee shall pay the Lessor rate. Said rates are to be paid net of any and all taxes or duties.‌

Include detailed lease rates in your Car Lease Agreement, specifying flat fees, weekly/monthly rates, per trip, or per mile charges. For example, “$5,000 USD,” “$500 USD per calendar month paid monthly,” or “$0.50 per mile driven, calculated monthly based on the vehicle’s odometer.” Payment terms may also cover deposit, due date, and expenses for vehicle damage.

5. DURATION OF AGREEMENT AND DATES AND PLACE OF COLLECTION AND RETURN

It is agreed that:‌

5.1 This Car Lease Agreement shall commence on the date of its execution and shall be in effect until any of the following occurrences, at which point the Agreement will end:

5.1.1 the failure of the Lessee to pay any Lease Rates due under this Car Lease Agreement within 60 (sixty) days of them falling due, provided that such delay was not expressly agreed upon between the Parties.

5.1.2 the provision of 14 (fourteen) days’ notice in writing by either Party.

If you wish to change the amount of notice of termination, allow for different notice periods in your Car Lease Agreement, or adjust who is responsible for providing notice, you can do so by changing the above clause.

5.1.3 the Return Date.‌

5.2 The Vehicle shall be collected from (Location) on (Date).

5.3 The Vehicle shall be returned to (Location) on (Date).

6. USAGE OF VEHICLE

It is agreed that the purpose of the Vehicle shall be commercial only.‌

Car leases can be restricted to commercial or personal use, with mileage and territory limitations imposed by the leasing agent. Exceeding the limits may result in penalties. You can modify this clause to include additional uses, such as recreational purposes. Alternatively, you can replace it with a clause stating: “The Lessee is authorized to use the Vehicle in any reasonable manner they deem appropriate.”

7. WARRANTIES AND INDEMNITIES

It is agreed that:‌

This section refers to loss that one party or the other may incur as a result of the lease agreement. Further protect your dealership from legal woes with this section.

7.1 Both Parties warrant that they have the necessary power and approval to enter into this Car Lease Agreement.

7.2 Both Parties warrant that they are not aware of anything in their reasonable control that will or could have an adverse effect upon their ability to perform their respective obligations under this Car Lease Agreement.

7.3 The Lessee undertakes to pay all Lease Rates to the Lessor promptly and to not unreasonably withhold payment.

7.4 The Lessee undertakes to permit only Approved Drivers to operate the Car during the Car Lease Agreement.

7.5 The Lessee undertakes that all Approved Drivers will only operate the Car when sober and fit to drive and will follow the rules of the road at all times.

7.6 The Lessee undertakes to return the Vehicle on written instruction from the Lessor.

7.7 The Lessor undertakes to not request the return of the Vehicle unreasonably.

7.8 The Lessee undertakes to not take the vehicle out of the region unless given prior written consent by the Lessor

We suggest replacing the name of the region with that of either the state or the country in which the agreement is made. If the car can be driven anywhere, then you can remove this clause and re-number the subsequent ones.

7.9 The Lessee undertakes to pay all fuel costs.

If you wish to bear fuel costs, you can change this clause. You can also split the fuel costs between the Lessor and Lessee by amending it.‌

7.10 The Lessor undertakes to insure and keep insured the Vehicle during the operation of this Car Lease Agreement.‌

The Lessee can also be responsible for the insurance. You may want to describe the type of insurance required, for example: “fully comprehensive,” “third-party, fire, and theft,” or “minimum required by law.” The wording should be clear and concise.

7.11 The Lessor undertakes to meet the costs of all routine vehicle maintenance and repairs due to normal wear and tear and expressly accepting damage caused by a collision. The Lessee may pay for the above and then recover the cost from the Lessor only with the prior written agreement of the Lessor.

Amend this clause to have the Lessee to meet the costs of routine maintenance or to split these costs between the Lessor and Lessee.

7.12 Where the Vehicle requires towing, garage services, and repairs for any reason, this shall be arranged by the Lessee but with the prior approval of the Lessor.

7.13 The Lessor undertakes to replace the vehicle with a similar vehicle if the vehicle is irreparably damaged or beyond the economic cost of repair.‌

7.14 The Lessee agrees to keep the Vehicle clean.

7.15 The Lessee agrees to keep a mileage and trip log.

This clause can be removed and the subsequent clauses re-numbered, if desired.

7.16 In the event of a collision the Lessee undertakes to reimburse any costs and loss however arising as a result of the collision that are not covered by insurance, including but not limited to the payment of the deductible (or excess) on the insurance policy (if any).

This clause can be removed and the subsequent clauses re-numbered, if desired.

7.17 The Lessee undertakes not to sublease the Vehicle.

7.18 The Lessee agrees not to use the Vehicle for any purpose other than those set out in Clause 6.

7.19 The Lessee undertakes to inform the Police, the Lessor, and the Insurance Company immediately if the Vehicle is stolen or is suspected of being stolen.

7.20 The Lessor accepts no obligation for the payment of any tax burden on the Lessee arising for any reason, including but not limited to tax on Benefits in Kind.

7.21 The Lessee agrees to hold harmless, to indemnify, and to keep indemnifying the Lessor for any and all losses however arising in connection with injury, death, and damage to property caused by the Vehicle.

7.22 The Lessee agrees to hold harmless, to indemnify, and to keep indemnifying the Lessor for any and all losses arising due to late payment of the Lease Rates or late return of the Vehicle.

7.23 The obligations and benefits under this Car Lease Agreement may be assigned by either Party, provided that the other Party first agrees in writing to said assignment ‌.

7.24 The failure or delay by either Party to enforce any term of this Car Lease Agreement or to act upon a breach of any term shall not constitute a waiver of their rights.

7.25 Both Parties warrant that they will not do anything to hinder or adversely affect the execution of the other Party’s duties under this Car Lease Agreement.

7.26 Both Parties warrant that they will submit to the exclusive jurisdiction of the courts and legal system stated in Clause 10.​

8. VARIATION

Any variation to this Car Lease Agreement shall be made in writing and signed by both Parties with the exception of variations of Schedules A and B, which can be amended by annexing a replacement version of the Schedule that must be signed and dated by both parties.

If either Party wants to make changes to the car leasing agreement, it must be put in writing. With PandaDoc, you can open the template to make changes and then resign the document together, saving it with the appropriate changes.

‌9. NOTICE

Any notice served under this Car Lease Agreement shall be made in writing and shall be considered served if it is handed to the other Party in person or delivered to their last known address or any other such address as the Party being served may have notified as his address for service. All notices shall be delivered in English.

10. GOVERNING LAW, DISPUTES, AND ARBITRATION

It is agreed that:

10.1 This Car Lease Agreement is made under the exclusive jurisdiction of the laws of state and country.

10.2 Disputes under this Car Lease Agreement shall be subject to the exclusive jurisdiction of the courts of state and country.‌

10.3 Notwithstanding the terms of 10.2, both Parties agree that in the event of a dispute they will enter into arbitration before the International Chamber of Commerce before a single arbitrator whose decision shall be final.

If you prefer not to include the arbitration provision or want to select a different arbitrator, please delete or modify this clause accordingly. Arbitration, unlike a legal case, is a private process, often included to emphasize the parties’ commitment to a fair arbitration hearing.

IN WITNESS WHEREOF, each of the Parties has executed this Car Lease Agreement:‌

Use PandaDoc’s eSignature solution to acknowledge the agreement electronically from any device. Save the agreement securely in the PandaDoc platform for future reference.

​[Lessor.Company]

​

Signature
MM / DD / YYYY

​[Lessor.FirstName][Lessor.LastName]​

​[Lessee.Company]​

​

Signature
MM / DD / YYYY

​[Lessee.FirstName][Lessee.LastName]​

Schedule A

The Travel Agency shall receive commissions equal to Commission Percentage % of gross sales. Invoices for commissions shall be generated each month and shall be paid by the Company on a net-30 basis.

PandaDoc contract templates are easily editable and fillable to save you time. There is no need for you to create new car lease agreements on your own.

Particulars of the Vehicle Being Leased

Vehicle Registration Number:

Vehicle Make:

Vehicle Model:

Year of Manufacture:

Engine Capacity:

Vehicle Identification Number (VIN):

Mileage at start of lease:

Fuel Type (Diesel, Petrol, LPG, Electric):

Fuel Level at start of lease:

Details of Insurer (name and address):‌

Insurance Policy Number:‌

​

If this lease agreement is for a vehicle that is not a car, you may need to change some of the above information.

Schedule B

Particulars of the Approved Drivers

The following shall be the Approved Drivers:

Name

Address

License Number

State License Issued In

​

​

​

​

You may change the list of approved drivers here. If you prefer to allow any driver, then you can remove the above table and state that here. For example: “Any person aged 18 and over who holds a valid driving license,” or “Any employee of ABC Corp Limited who holds a valid driving license.”

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FAQ: Car Lease Agreement Template

  • A car lease agreement, also called a vehicle lease agreement, explains the rights and responsibilities of both the car lease agent and the customer. It is used by dealerships to provide a long-term rental for customers who prefer not to purchase a vehicle. 

  • A vehicle lease agreement template varies a lot depending on what the lessor wishes to stipulate in it. However, we can find the following sections:

    • Description of the vehicle

    • Amount to be paid, and dates for making payments

    • Clause of the insurance to be used

    • Actions to be taken in case of damage, destruction, or loss.

    • Deposits to be given

    • Maintenance and repair costs

    • Causes for termination of the contract

    • Other relevant terms

  • If the lessee wishes to terminate the contract promptly, the lessee may do so by returning the vehicle and paying any stipulated fees for early return of it. However, there are other options:

    • Buyout option: Some contracts allow you to buy out the leased vehicle. If you purchase the vehicle in the middle of the contract, you’ll have to pay the remaining cost of the rental.

    • Transfer the lease to someone else.

    • Transferring the lease to another car.

  • Usually, the car must be returned to the lessor, and the contract is terminated. If there are damages or unpaid bills, they’ll be taken from the deposit previously given at the beginning of the agreement. Also, some contracts allow the lessee to purchase the vehicle instead of returning it at the end of the agreement.

  • A car lease agreement establishes a legal relationship in which one person allows the use of his or her vehicle to another. The person who receives the vehicle will pay a fee for its use and must abide by all the conditions of use that are imposed. In general, it works the same as a car rental, but the period is usually much longer than that normally stipulated in rental agreements.

Disclaimer

Materials (e.g. templates, educational articles, blog posts and informational content), made available through PandaDoc, including via any integrations, connectors, extensions, plugins, or third-party AI platforms (e.g. ChatGPT, Claude, or similar tools) are for general information purposes only and are provided "as is." These materials do not constitute legal, regulatory, or compliance advice and should not be construed as such. It is your responsibility to ensure materials meet your specific legal requirements. Consult a qualified attorney licensed in your jurisdiction before relying on these materials. PandaDoc disclaims all warranties, express or implied, including fitness for a particular purpose or non-infringement.

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Car Lease Agreement Template

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